FAO Food Price Index
File:FAO Food Price Index 1961–2024.jpg (FAO) Food Price Index 1961–2024 in nominal and real terms. Years 2014–2016 is 100.]]
The FAO Food Price Index (FFPI) is a food price index by the Food and Agriculture Organization (FAO) of the United Nations. It records the development of world market prices of 24 agricultural commodities and foodstuffs from five major food commodity groups.{{Cite web |last=Cluff |first=Meritt |last2=Mustafa |first2=Shirley |date=June 2020 |title=Revisions To The FAO Food Price Indices |url=https://openknowledge.fao.org/server/api/core/bitstreams/32aabe24-4720-4b55-973a-a7047be70885/content |website=fao.org}}{{cite web |last=Mustafa | first=Shirley |url=https://www.foodindustry.com/files/FAO_FFPI_2021_Presentation.pdf |title=The FAO Food Price Index |publisher=Food Industry |access-date=26 November 2024}} The FFPI is considered an indicator of future inflation{{Citation needed|date=November 2024|reason=the 'future' part is questionable}} and cost trends in the food industry.
Concept
The trade-weighted FAO Food Price Index is technically a price index and is calculated using the Laspeyres formula. It documents the development of world market prices of 24 agricultural commodities and foodstuffs in U.S. dollars. Foodstuffs have been grouped by the Food and Agriculture Organization (FAO) of the United Nations into five commodity groups (meat, dairy products, cereals, oils and fats, and sugar).
When calculating the price index according to Étienne Laspeyres, the weights chosen (i.e., the quantities consumed) come from the base year. The reference period from 2014 to 2016 (index value 100) serves as the basis. The index determines the price of the commodity groups in the composition of the base year at goods prices of the reference year in relation to the price of the same commodity groups (same consumption quantities) at goods prices of the base year. From all the data, FAO calculates five sub-indices, which together make up the overall index.
The FAO Food Price Index is published on the first Thursday of every month.
Composition
[[File:Food Price Index.webp|thumb|400px|right|
{{legend-line|#00A2FF solid 4px|Food Price Index}}
{{legend-line|#FF2600 solid 3px|Oils}}
{{legend-line|#F8BA00 solid 3px|Cereals}}
{{legend-line|#929292 solid 3px|Dairy}}
{{legend-line|#61D836 solid 3px|Meat}}
{{legend-line|#D41876 solid 3px|sugar}}
]]
The overall index consists of the following five sub-indices:{{Cite web |title=The FAO Food Price Index rises to a new all-time high in February |url=https://www.fao.org/worldfoodsituation/foodpricesindex/en/ |access-date=2022-03-28 |website=www.fao.org}}
- Meat Price Index (price index for meat)
- Dairy Price Index (price index for dairy products)
- Cereals Price Index (price index for cereals)
- Oils Price Index (price index for oils and fats)
- Sugar Price Index (price index for sugar)
Historical development
File:Food Price Index US.webp]]
The table shows the development of the FAO Food Price Index since 1990.
| class="wikitable sortable"
!Date !Food price index |
| 2004
|65.6 |
| 2005
|67.4 |
| 2006
|72.6 |
| 2007
|94.3 |
| 2008
|117.5 |
| 2009
|91.6 |
| 2010
|106.7 |
| 2011
|131.9 |
| 2012
|122.8 |
| 2013
|120.1 |
| 2014
|115.0 |
| 2015
|93.0 |
| 2016
|91.9 |
| 2017
|98.0 |
| 2018
|95.9 |
| 2019
|95.1 |
| 2020
|98.1 |
| 2021
|125.7 |
| January 2022
|135.4 |
| March 2022
|159.3 |
| February 2023
|129.8 |